I set both the source and netflix to stereo audio. Most TVs won't pass HD audio so you have to set the audio to stereo or PCM. Use which works.
I could not get any audio through my Sennheizzer remote phones when viewing Netflixx even tho they work very well with Shaw cable programming.
Went to Source store and got a Toslink digital optical cable and connected it to an RCA converter box. Plugged phones into converter and finally got audio on some Netflixx shows but not on all of them. White light comes on indicating 'error'. I think it has something to do with mono or stereo transmission. Anyone know about this problem?